Economics: Private and Public Choice
16th Edition
ISBN: 9781337642224
Author: James D. Gwartney; Richard L. Stroup; Russell S. Sobel
Publisher: Cengage Learning US
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Question
Chapter 24, Problem 14CQ
(a)
To determine
Filling of table with total revenue, marginal revenue, fixed cost and total cost.
(b)
To determine
Maximizing profit by charging
(c)
To determine
Price charging and output produced for maximizing the profit by estimating the
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Students have asked these similar questions
Q3
You run a game-day shuttle service for parking services for the local ball club. Suppose you are compensated $30 per customer, per ride. In other
words, your marginal revenue is $30. Your costs for different customer loads are summarized in the following table.
For each customer load, calculate both the marginal cost and the average cost. Then answer the question that follows.
Note: Round your answers to the nearest cent.
Total Cost Marginal Cost
($)
Customers
1
2
3
4
5
6
7
8
$30
$45
$75
$120
$180
$255
$345
$450
($ per customer)
$15
$30
$45
$60
$75
$90
$105
In order to maximize profits, you should carry 6
Average Cost
($ per customer)
$
$30.00
customers per load.
You run a game-day shuttle service for parking services for the local ball club. Suppose you are compensated $30 per customer, per ride. In other words, your marginal revenue is $30. Your costs for different customer loads are summarized in the following table.
For each customer load, calculate both the marginal cost and the average cost. Then answer the question that follows.
Note: Round your answers to the nearest cent.
Customers
Total Cost
Marginal Cost
Average Cost
($)
($ per customer)
($ per customer)
1
$30
2
$36
3
$48
4
$66
5
$90
6
$120
7
$156
8
$198
In order to maximize profits, you should carry customers per load.
Chapter 24 Solutions
Economics: Private and Public Choice
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Similar questions
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